Linqto’s Bankruptcy Under Fire as Shareholder Alleges Fraud and “Improper Forum Shopping”

Key Points

1. Sapien Group, a major shareholder of Linqto Inc., filed a motion to transfer the bankruptcy proceedings from Texas to Delaware, accusing Linqto's management of fraud and improper actions.

2. The motion claims Linqto's Texas-based entity was created just three months before filing, allegedly to block a shareholder vote and avoid accountability under Delaware law.

3. Steven Nerayoff, former Ethereum advisor, publicly criticized Linqto's bankruptcy as unjust, alleging it was a way to seize customers' assets, though he is not a shareholder or customer.

4. A critical court hearing is set for August 5, 2025, where motions will be heard, including one that could determine whether securities' proceeds belong to Linqto's estate or its customers.

5. The bankruptcy filing has drawn scrutiny from crypto investors and the XRP community, with concerns over the legitimacy of CEO F. Daniel Siciliano's appointment and the overall process.